Verde Clean Fuels Inc. has suspended development of its gas-to-gasoline Permian Basin project in the United States due to changing market conditions.
The clean fuels company said it suspended development due to rising demand for natural gas in the basin that altered the economics of the project.
The project was launched in February 2024 as a joint development agreement with Cottonmouth Ventures, a subsidiary of Diamondback Energy.
The two companies agreed to develop a natural gas-to-gasoline plant in the Permian Basin using Verde’s proprietary gas-to-gasoline technology and associated natural gas from Diamondback’s operations.
Following the agreement, Verde began development work on the project, which included a front-end engineering and design study, which was completed in December 2025.
“We are thankful to Diamondback for their support of the Permian Basin project. The learnings from the work that was completed, in particular from the FEED study, will continue to be useful as we explore other opportunities to deploy our technology,” said Ernest Miller, CEO of Verde.
Miller said Verde will redirect resources to other regions where natural gas is stranded or flared and may offer higher-value outlets for its technology.
Verde’s synthesis gas-to-gasoline plus process converts syngas, derived from diverse feedstocks, into fully finished liquid fuels that require no additional refining.
The company is currently focused on opportunities to convert associated natural gas into gasoline, which is expected to provide a market for such natural gas with the added benefit that it produces a gasoline with a lower carbon intensity than conventional gasoline.
